Tuesday, December 11, 2012

Market Update December 2012

As we approach the end of the year, it is a good idea to take a snapshot view of our marketplace and see the progress we have been building in our local real estate market. There is some big news when it comes to inventory levels and the number of homes sold is also increasing steadily.

Low Inventory Points to a Strong MarketThe number of active listings in our marketplace is declining. To help illustrate the stark change in just two years, consider that in November 2010 we had about 6,906 homes on the market for sale. At the same time in 2011 the number of listings on the market was 5,900. But this year in October we reported just 1900 active listings! This indicates a continued dwindling inventory, which coupled with increased sales definitely points to a stronger market.

Selling Activity Is On the RiseOur sold properties are also increasing year over year. Once again looking at October last year we had 1421 sold homes versus the same time this year with 1715 properties that sold. With half the inventory as just a year ago combined with an increase in sales, despite the winter months we are seeing some very positive things happening.

Interest Rates Continue to Be at Record LowsJust as we are seeing dramatic changes in inventory levels and steady upward trends in sales, interest rates also keep at their record setting lows. At this point, we are reporting interest rates as low as 3.25% for a 30-year fixed rate loan and even lower for shorter termed loans.

Great Time for SellersA year ago – low inventory and strong interest for new homes was definitely there but today we are in an even better position. In fact, we need more inventory to sustain the number of buyers out there looking to lock in today’s amazing rates. Fewer homes on the market usually translates to the ability to negotiate better terms for sellers plus of course multiple offers and high list-to-sale price ratios.~If you would like to explore your options in today’s real estate market whether that means buying, selling, investing or just browsing the marketplace – contact us today. We are happy to help!